Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)

2017, c. 20Budget Implementation Act, 2017, No. 1

• 41 (1) Subsection 6(2) of the Budget Implementation Act, 2017, No. 1 is repealed.

• (2) Subsection 6(5) of the Act is repealed.

C.R.C., c. 945Income Tax Regulations

• 42 (1) Subparagraph 201(1)(b)(ii) of the Income Tax Regulations is replaced by the following:

  • (ii) in respect of

    • (A) money on loan to an association, corporation, institution, organization, partnership or trust,

    • (B) money on deposit with an association, corporation, institution, organization, partnership or trust, or

    • (C) property deposited or placed with an association, corporation, institution, organization, partnership or trust,

• (2) Subsection (1) applies to the 2018 and subsequent taxation years.

• 43 (1) Paragraph 229(1)(b) of the Regulations is replaced by the following:

  • (b) in respect of each member of the partnership who is entitled to a share referred to in paragraph (c) or (d) for the fiscal period, the member’s

    • (i) name,

    • (ii) address, and

    • (iii) business number, Social Insurance Number or trust account number, as the case may be;

• (2) Subsection (1) applies to the 2018 and subsequent taxation years.

• 44 (1) Section 3503 of the Regulations and the heading before it are repealed.

• (2) Subsection (1) is deemed to have come into force on February 27, 2018.

45 The portion of Class 43.2 in Schedule II to the Regulations before paragraph (a) is replaced by the following:

• 46 (1) Schedule VIII to the Regulations is repealed.

• (2) Subsection (1) is deemed to have come into force on February 27, 2018.

PART 2Amendments to the Excise Act, 2001 (Tobacco Taxation) and to Related Legislation

2002, c. 22Excise Act, 2001

• 47 (1) Subsections 43.1(1) and (2) of the Excise Act, 2001 are replaced by the following:

  Marginal note:Definition of inflationary adjusted year

  • 43.1 (1) In this section, inflationary adjusted year means 2019 and every year after that year.

  • Marginal note:Annual adjustments

    (2) Each rate of duty set out in sections 1 to 4 of Schedule 1 and paragraph (a) of Schedule 2 in respect of a tobacco product is to be adjusted on April 1 of an inflationary adjusted year so that the rate is equal to the greater of

    • (a) the rate determined by the formula

      A × B

      where

      A

      is the rate of duty applicable to the tobacco product on March 31 of the inflationary adjusted year, and

      B

      is the amount, rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula

      C/D

      where

      C

      is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and

      D

      is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular year; and

    • (b) the rate of duty referred to in the description of A in paragraph (a).

• (2) Subsection (1) is deemed to have come into force on February 28, 2018.

• 48 (1) The definition adjustment day in section 58.1 of the Act is amended by striking out “or” at the end of paragraph (a) and by replacing paragraph (b) with the following:

  • (a.1) February 28, 2018; or

  • (b) in the case of an inflationary adjusted year, April 1 of that year. (date d’ajustement)

• (2) The portion of the definition taxed cigarettes in section 58.1 of the Act before paragraph (a) is replaced by the following:

  taxed cigarettes

  taxed cigarettes of a person means cigarettes in respect of which duty has been imposed under section 42 or 53 at the rate applicable on the day before an adjustment day, and that, at the beginning of the adjustment day,

• (3) Subsections (1) and (2) are deemed to have come into force on February 28, 2018.

• 49 (1) Subsection 58.2(2) of the Act is replaced by the following:

  • Marginal note:Imposition of tax — 2018 increase

    (1.1) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of February 28, 2018 at the rate of $0.011468 per cigarette.

  • Marginal note:Imposition of tax — inflationary adjusted years

    (2) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of April 1 of an inflationary adjusted year at a rate per cigarette equal to

    • (a) in the case of cigarettes in respect of which duty has been imposed under section 42, the amount determined by the formula

      (A – B)/5

      where

      A

      is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes on April 1 of the inflationary adjusted year, and

      B

      is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes on March 31 of the inflationary adjusted year; and

    • (b) in the case of cigarettes in respect of which duty has been imposed under section 53, the amount determined by the formula

      C – D

      where

      C

      is the rate of duty applicable under paragraph 1(a) of Schedule 3 per cigarette on April 1 of the inflationary adjusted year, and

      D

      is the rate of duty applicable under paragraph 1(a) of Schedule 3 per cigarette on March 31 of the inflationary adjusted year.

• (2) Subsection (1) is deemed to have come into force on February 28, 2018.

• 50 (1) Subsection 58.5(1) of the Act is amended by striking out “or” at the end of paragraph (a) and by replacing paragraph (b) with the following:

  • (a.1) in the case of the tax imposed under subsection 58.2(1.1), April 30, 2018; or

  • (b) in the case of the tax imposed under subsection 58.2(2) in respect of an inflationary adjusted year, May 31 of the inflationary adjusted year.

• (2) Subsection (1) is deemed to have come into force on February 28, 2018.

• 51 (1) Subsection 58.6(1) of the Act is amended by striking out “or” at the end of paragraph (a) and by replacing paragraph (b) with the following:

  • (a.1) in the case of the tax imposed under subsection 58.2(1.1), April 30, 2018; or

  • (b) in the case of the tax imposed under subsection 58.2(2) in respect of an inflationary adjusted year, May 31 of the inflationary adjusted year.

• (2) Subsection (1) is deemed to have come into force on February 28, 2018.

• 52 (1) Subparagraphs 216(2)(a)(i) to (iv) of the Act are replaced by the following:

  • (i) $0.24 multiplied by the number of cigarettes to which the offence relates,

  • (ii) $0.24 multiplied by the number of tobacco sticks to which the offence relates,

  • (iii) $0.30 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and

  • (iv) $0.47 multiplied by the number of cigars to which the offence relates, and

• (2) Subparagraphs 216(3)(a)(i) to (iv) of the Act are replaced by the following:

  • (i) $0.36 multiplied by the number of cigarettes to which the offence relates,

  • (ii) $0.36 multiplied by the number of tobacco sticks to which the offence relates,

  • (iii) $0.45 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and

  • (iv) $0.93 multiplied by the number of cigars to which the offence relates, and

53 Paragraphs 240(a) to (c) of the Act are replaced by the following:

• 54 (1) Paragraph 1(a) of Schedule 1 to the Act is replaced by the following:

  • (a) $0.59634; or

• (2) Subsection (1) is deemed to have come into force on February 28, 2018.

• 55 (1) Paragraph 2(a) of Schedule 1 to the Act is replaced by the following:

  • (a) $0.11927; or

• (2) Subsection (1) is deemed to have come into force on February 28, 2018.

• 56 (1) Paragraph 3(a) of Schedule 1 to the Act is replaced by the following:

  • (a) $7.45425; or

• (2) Subsection (1) is deemed to have come into force on February 28, 2018.

• 57 (1) Paragraph 4(a) of Schedule 1 to the Act is replaced by the following:

  • (a) $25.95832; or

• (2) Subsection (1) is deemed to have come into force on February 28, 2018.

• 58 (1) Subparagraph (a)(i) of Schedule 2 to the Act is replaced by the following:

  • (i) $0.09331, or

• (2) Paragraph (b) of Schedule 2 to the Act is replaced by the following:

  • (b) the amount obtained by multiplying the sale price, in the case of cigars manufactured in Canada, or the duty-paid value, in the case of imported cigars, by 88%.

• (3) Subsections (1) and (2) are deemed to have come into force on February 28, 2018.

2014, c. 20Economic Action Plan 2014 Act, No. 1

59 Subsection 76(5) of the Economic Action Plan 2014 Act, No. 1 is replaced by the following:

60 Subsection 78(3) of the Act is replaced by the following:

61 Subsection 79(4) of the Act is replaced by the following:

62 Subsection 80(4) of the Act is replaced by the following:

63 Subsection 81(4) of the Act is replaced by the following:

2014, c. 39Economic Action Plan 2014 Act, No. 2

64 Subsection 100(4) of the Economic Action Plan 2014 Act, No. 2 is replaced by the following:

65 Subsection 101(2) of the Act is replaced by the following:

2017, c. 20Budget Implementation Act, 2017, No. 1

• 66 (1) Subsection 45(3) of the Budget Implementation Act, 2017, No. 1 is repealed.

• (2) Subsection 45(5) of the Act is repealed.

Application

67 For the purposes of applying the provisions of the Customs Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount is to be determined and interest is to be computed on it as though paragraphs 1(a), 2(a), 3(a) and 4(a) of Schedule 1 to the Excise Act, 2001, as enacted by sections 54 to 57, and subparagraph (a)(i) and paragraph (b) of Schedule 2 to the Excise Act, 2001, as enacted by section 58, had been assented to on February 28, 2018.

PART 3Amendments to the Excise Act, 2001 (Cannabis Taxation), the Excise Tax Act and Other Related Texts

Coordination with the Cannabis Act

• 68 (1) If Bill C-45, introduced in the 1st session of the 42nd Parliament and entitled the Cannabis Act (referred to in this section and section 118 as the “other Act”), receives royal assent, then for the purposes of this section and sections 117 and 118, commencement day means the day on which subsection 204(1) of the other Act comes into force.

• (2) If the other Act receives royal assent, then sections 69 to 78, subsection 79(1), section 84, subsection 85(2), sections 87, 89 to 106 and 108 to 113 and subsection 115(1) come into force on the first day on which both this Act and the other Act have received royal assent.

• (3) Despite subsection (2), if the other Act receives royal assent, then sections 158.02, 158.09 to 158.12, 158.15 and 158.16 of the Excise Act, 2001, as enacted by section 73, come into force on commencement day.

• (4) If the other Act receives royal assent, then subsection 79(2), sections 80 to 83, subsections 85(1) and (3), sections 86, 88, 107 and 114, subsection 115(2) and section 116 come into force on commencement day.

2002, c. 22Excise Act, 2001

• 69 (1) The definitions container, excise stamp, non-duty-paid, stamped and take for use in section 2 of the Excise Act, 2001 are replaced by the following:

  container

  container, in respect of a tobacco product or a cannabis product, means a wrapper, package, carton, box, crate, bottle, vial or other container that contains the tobacco product or cannabis product. (contenant)

  excise stamp

  excise stamp means a tobacco excise stamp or a cannabis excise stamp. (timbre d’accise)

  non-duty-paid

  non-duty-paid, in respect of packaged alcohol or a cannabis product, means that duty (other than special duty in the case of alcohol) has not been paid on the alcohol or cannabis product. (non acquitté)

  stamped

  stamped means

  • (a) in respect of a tobacco product, that a tobacco excise stamp, and all prescribed information in a prescribed format in respect of the tobacco product, are stamped, impressed, printed or marked on, indented into or affixed to the tobacco product or its container in the prescribed manner to indicate that duty, other than special duty, has been paid on the tobacco product; and

  • (b) in respect of a cannabis product, that a cannabis excise stamp, and all prescribed information in a prescribed format in respect of the cannabis product, are stamped, impressed, printed or marked on, indented into or affixed to the cannabis product or its container in the prescribed manner to indicate that duty has been paid on the cannabis product. (estampillé)

  take for use

  take for use means

  • (a) in respect of alcohol, to consume, analyze or destroy alcohol or to use alcohol for any purpose that results in a product other than alcohol; and

  • (b) in respect of a cannabis product, to consume, analyze or destroy the cannabis product. (utilisation pour soi)

• (2) Paragraph (a) of the definition packaged in section 2 of the Act is replaced by the following:

  • (a) in respect of raw leaf tobacco, a tobacco product or a cannabis product, packaged in a prescribed package; or

• (3) The definition produce in section 2 of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):

  • (c) in respect of a cannabis product, has the same meaning as in subsection 2(1) of the Cannabis Act but also includes packaging the cannabis product. (production)

• (4) Section 2 of the Act is amended by adding the following in alphabetical order:

  additional cannabis duty

  additional cannabis duty means a duty imposed under section 158.2 or 158.22. (droit additionnel sur le cannabis)

  cannabis

  cannabis has the same meaning as in subsection 2(1) of the Cannabis Act. (cannabis)

  cannabis duty

  cannabis duty means a duty imposed under section 158.19 or 158.21. (droit sur le cannabis)

  cannabis excise stamp

  cannabis excise stamp means a stamp that is issued by the Minister under subsection 158.03(1) and that has not been cancelled under section 158.07. (timbre d’accise de cannabis)

  cannabis licensee

  cannabis licensee means a person that holds a cannabis licence issued under section 14. (titulaire de licence de cannabis)

  cannabis plant

  cannabis plant has the same meaning as in subsection 2(1) of the Cannabis Act. (plante de cannabis)

  cannabis product

  cannabis product means

  • (a) a product that is cannabis but that is not industrial hemp produced or imported in accordance with the Cannabis Act or the Industrial Hemp Regulations,

  • (b) a product that is an industrial hemp by-product,

  • (c) anything that is made with or contains a product described in paragraph (a) or (b), or

  • (d) a prescribed substance, material or thing,

  but does not include a prescribed substance, material or thing. (produit du cannabis)

  dutiable amount

  dutiable amount, in respect of a cannabis product, means

  • (a) if paragraph (b) does not apply, the amount determined by the formula

    A × [100%/(100% + B + C)]

    where

    A

    is the total of the following amounts that the purchaser is liable to pay to the vendor by reason of, or in respect of, the sale of the cannabis product:

    • (i) the consideration, as determined for the purposes of Part IX of the Excise Tax Act, for the cannabis product,

    • (ii) any additional consideration, as determined for the purposes of that Part, for the container in which the cannabis product is contained, and

    • (iii) any amount of consideration, as determined for the purposes of that Part, that is in addition to the amounts referred to in subparagraphs (i) and (ii), whether payable at the same or any other time, including, but not limited to, any amount charged for or to make provision for advertising, financing, commissions or any other matter,

    B

    is the percentage set out in section 2 of Schedule 7, and

    C

    is

    • (i) if additional cannabis duty in respect of a specified province is imposed on the cannabis product, the prescribed percentage in respect of the specified province, or

    • (ii) in any other case, 0%; and

  • (b) in prescribed circumstances, the amount determined in prescribed manner. (somme passible de droits)

  flowering material

  flowering material means the whole or any part (other than viable seeds) of an inflorescence of a cannabis plant at any stage of development, including the infructescence stage of development. (matière florifère)

  industrial hemp

  industrial hemp means cannabis that is industrial hemp for the purposes of the Cannabis Act or the Industrial Hemp Regulations. (chanvre industriel)

  industrial hemp by-product

  industrial hemp by-product means flowering material (other than viable achenes) or non-flowering material that has been removed or separated from an industrial hemp plant and that has not

  • (a) been disposed of by retting or by otherwise rendering it into a condition such that it cannot be used for any purpose not permitted under the Controlled Drugs and Substances Act; or

  • (b) been disposed of in a similar manner under the Cannabis Act. (sous-produit de chanvre industriel)

  industrial hemp grower

  industrial hemp grower means a person that holds a licence or permit under the Controlled Drugs and Substances Act or the Cannabis Act authorizing the person to produce industrial hemp plants. (producteur de chanvre industriel)

  industrial hemp plant

  industrial hemp plant means a cannabis plant, including a seedling, that is industrial hemp. (plante de chanvre industriel)

  low-THC cannabis product

  low-THC cannabis product means a cannabis product

  • (a) consisting entirely of cannabis of a class referred to in any of items 1 to 3 of Schedule 4 to the Cannabis Act; and

  • (b) any part of which does not have a maximum yield of more than 0.3% THC w/w, taking into account the potential to convert delta-9-tetrahydrocannabinolic acid into THC, as determined in accordance with the Cannabis Act. (produit du cannabis à faible teneur en THC)

  non-flowering material

  non-flowering material means any part of a cannabis plant other than flowering material, viable seeds and a part of the plant referred to in Schedule 2 to the Cannabis Act. (matière non florifère)

  prescription cannabis drug

  prescription cannabis drug means a cannabis product that is a drug that has been assigned a drug identification number under the Food and Drug Regulations, other than

  • (a) a drug or mixture of drugs that may, under the Food and Drugs Act or the Controlled Drugs and Substances Act, be sold to a consumer, as defined in subsection 123(1) of the Excise Tax Act, without a prescription, as defined in section 1 of Part I of Schedule VI to the Excise Tax Act; or

  • (b) a prescribed cannabis product or a cannabis product of a prescribed class. (drogue de cannabis sur ordonnance)

  specified province

  specified province means a prescribed province. (province déterminée)

  THC

  THC means Δ⁹-tetrahydrocannabinol ((6aR, 10aR)-6a, 7,8,10a-tetrahydro-6,6,9-trimethyl-3-pentyl-6H-dibenzo [b,d] pyran-1-ol). (THC)

  tobacco excise stamp

  tobacco excise stamp means a stamp that is issued by the Minister under subsection 25.1(1) and that has not been cancelled under section 25.5. (timbre d’accise de tabac)

  vegetative cannabis plant

  vegetative cannabis plant means a cannabis plant, including a seedling, that has not yet produced reproductive structures, including flowers, fruits or seeds. (plante de cannabis à l’état végétatif)

  viable seed

  viable seed means a viable seed of a cannabis plant that is not an industrial hemp plant. (graine viable)